Assignment Pm0010

8/3/2019 Assignment Pm0010

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Q.1 Explain the followinga. Project Vs. Program Vs. Portfoliob. Project work and Traditional functional work

A-a)Difference between Project, Program and Portfolio ManagementProject Management: A project has a definite start and end date with a clearlymentioned deliverable produced and project management is the application ofknowledge, skills, tools, techniques and processes to effectively manage a team toachieve this final deliverables, which means the management of a specific project.

Project management focuses on delivering the specific objectives of the project.Program Management: A program is a group of related projects which aremanaged together to obtain specific benefits and which cannot be obtain if theprojects are managed individually. Program management is focused on achievingthe strategic objectives of the integrated project.Portfolio Management: A portfolio is the collection of projects or programs groupedtogether to facilitate effective management of effort to meet strategic businessobjectives and this typically includes identifying, and prioritising projects andprograms to achieve specific strategic business objectives.If you consider projects as the bottom of a hierarchy then programs sit above them in

the middle of the hierarchy and address a related set of projects. This allows the

portfolio management level to stand at the top of this hierarchy.

b) Differences between Project Work and Traditional Functional WorkProject work and traditional functional work differ in many ways. It is important tounderstand these differences.Functional work is routine ongoing work. Each day machine operators, carsalesmen, secretaries, accountants, financial analysts and quality inspectors performfunctional work that is routine, notwithstanding some variations from day to day. Thefunctional worker gets training from a manager assigned to the specific function, andthe manager supervises and manages the worker according to standards ofproductivity and quality set for the particular function.In contrast to functional work, project work is a temporary endeavour undertaken to

create a unique, non-routine product or service. A project manager manages a

specific project with people and other resources assigned to him only for project

management support on the specific project, and not on an ongoing basis. The

project manager is responsible for the approved objectives of a project such as

budget, schedule and specifications. Project terms are typically not organised in the

same hierarchical structure as that of functional group.


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Q.2 Compare Operation and project procurement. Also list and explain the

project procurement process.

ANS- The differences between the procurement carried out for the overall operationof an organisation, and the procurement carried out for a specific project, are shown

below

Project Procurement Management ProcessThe project procurement method varies depending on the category of the contractedproduct or service. The broad categories are:

Materials or products

Equipment or tools

Labours

Professional services

Totally engineered systems

Total project Project Procurement Management generally involves the following: Deciding to Make or Buy

Outsourcing the work for a Buy decision.

Managing risk (although risk management is often addressed separately, it

is noteworthy that contracts are, at their core, risk management tools.)

All procurement requires some level of planning. The intensity and the effort requiredin planning depend on the complexity of the scope of work in the procurementpackage.For a manufacturing company deciding to starts a project, the make or buy decisionforms the first step in the procurement planning. This decision is based on a costcomparison between make and buy, and the timely availability of themanufacturing equipment or shop personnel for meeting deliveries without adverselyaffecting their other job orders. Several companies in India exist, wherein; thecompany or a division of the company already manufactures a product, and the

company is also executing projects for its clients which require the same product as


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part of another project scope. The market scenario for the product or service to beprocured gives rise to any of the following three conditions:

Sole Source: In this case there is only one qualified seller in the market. Forexample, Dow Chemicals under their patent was the only manufacturer ReverseOsmosis (RO) membranes which was utilised for desalinating saline water and all

water treatment package vendors had to buy RO membranes only from them or theirlicensee in a country.

Single Source: This is a case when your organisation prefers to work with anidentified seller, even though other sellers may offer a lower price. Sometimescompanies show a preference for a supplier with a view to create a long termrelationship for a niche product which the company may require to procure often.

Oligopoly: This is a condition where the providers of the product or service are sofew in number that the actions and pricing of one seller affect the actions and pricingof the other sellers. Examples of airline fares, oil prices, and hardware prices can fallin this category.

The function performed by each process is explained below.Plan Purchases and AcquisitionPlan Purchases and Acquisitions is the process for deciding what to buy or acquireand when and how to buy that. It is a process of identifying the risks involved in eachmake or buy decision. It also reviews the type of contract with regard to mitigatingthe risk by determining what risks can be transferred to seller.The outputs of this process are:

starting with development of procurement documentation and culminating in contractclosure.

which is included in the particular contract).Plan ContractingThis process includes preparation of a procurement document for each contractplanned. This document is issued to prospective sellers who are invited to bid. Theinvitation is termed Invitation To Bid (ITB), Request For Quotation (RFQ), tendernotice, Request For Proposal (RFP), invitation for negotiation or contractor initialresponse.ITB and RFQ (both imply the same type of invitation) are focused on getting thesellers price, and not his ideas. For example if RFP asks for a price that means inaddition, it necessarily asks for the sellers and ideas on how the project work should

be done, which implies that there is a bit of consultancy service demanded from thesellers in their response.Evaluation criteria: The first category of evaluation relates to prequalification of afirm for receiving the ITB. Here, a prior assessment of the capability of a firm toperform the intended scope of work is made. For large value contracts, the ITB ispreceded by an invitation to submit a prequalification offer, in which the seller isasked to submit his experience list for similar works carried out by enumerating thefollowing:

work.

financial statements like balance sheet, Profit and Loss (P & L) accountfor the last 3 to 5 years.


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ment/production machinery owned.

This data submitted by all prospective bidders is analysed to arrive at a list of pre-qualified bidders, eligible to receive the ITB/RFP.The second category of evaluation criteria relates to evaluating the bids received inresponse to the ITB/RFP. These may involve price loading criteria for technical andcommercial deviations stipulated by the bidders in their bids, as well as specificcriteria for price loading on utilities.Request Seller ResponsesWhile the prospective sellers are expected to submit their bids in response to the

ITB/RFP as issued to them, it is a common practice in large value contracts to host abidders conference, where all bidders are present and are permitted to askquestions concerning the SOW. This method is followed to ensure that all bidderspossess the same information on which to base their prices and proposals. Aftersatisfactory completion of this step, a due date for submission of the bid/proposal iscommunicated to all bidders. This process is called solicitation.The output of this process is a bunch of bids proposals from the bidders. Theproposals are the sellers prepared document that describes the sellers ability toprovide the requested products/services at his quoted price.Select SellersThis process involves complete evaluation (techno-commercial evaluation and price

evaluation) of the bids received, followed by negotiations with the bidders. Here thebidders have been pre-qualified following a fairly extensive evaluation; the finalselection of the seller is usually based on the lowest evaluated price.The outputs of this process are:

The Contract: This can be a simple purchase order or a complex document. Acontract is a legal document backed by the countrys legal system (as long as it doesnot include illegal activities).

Contract Management Plan: This covers contract administration activitiesthrough the life of the contract.

Contract AdministrationContract administration is a process of managing the contract between buyer andseller. It is also provides:

documentation of this performance.

ly manage contract related changes.

Contract ClosureContract closure is a process of completing the contract by resolving all open items.

Sometimes, a contract may be foreclosed or terminated by mutual agreement

between buyer and seller.


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Q.3 Describe the role of project managers in Human resource managementand communication management.

ANS-Role of Project Manager in HR and Communications Management

A project manager is responsible for managing various tasks, activities andprocesses to ensure that the project is delivered in the defined time. He isresponsible for defining the goals and objectives of the project and ensures that theresources that are required for the smooth working of the project are available. Healso monitors and controls the project process to keep track of the status of the work.This ensures that the progress, schedule, procedures and the cost of the project arewell monitored. Apart from monitoring and controlling the implementation andexecution of the project, a project manager also plays a vital role in HumanResources and communications management such as:

sistency in methodology,

get the job done.

performance and correcting as

necessary.

Human Resource Management ProcessHuman Resource Management includes various processes that are vital to make themost effective use of the people involved with a project. The main process involvedwith the HR Management process includes:

1.Acquiring a Project TeamThe members who belong to different groups and functions and are allocated to theactivities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period oftime. However, they are disbanded when the project is complete. Sometimes, due tothe nature of the specific formation and disbandment, project teams are usually agilein organisations.Acquiring a project team is the process of acquiring the specific people needed toaccomplish all phases of the given project. Ultimately the team members will bring allthe specific qualifications and capabilities to the project team. However, the projectmanagement team has control over the selection process. Selection of team mates

involves certain concerns which need to be evaluated.


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Important factors that are considered during the process of acquiring the team are:

position to supply the required Human Resources in a project.

agenda, budgets, consumer satisfaction and quality. It declines the probability of

success and eventually results in project cancellation.

2. Developing a Project TeamDeveloping a project team is a process of enhancing interaction among the teammembers and also the project manager. The process refers to increasingcompetencies of individuals and building up team spirit, which finally leads to aquality project.

To achieve project success, there should be good communication among the teammembers. Project managers should administer the development of the project team.The project manager should create the relevant environment for teamwork, providenew goals for the team to compete and achieve. Project managers shouldencourage feedback from the team. The project manager should provide effectivereview and good support to the team staff.Open communication between the project manager and team reduces conflicts. Themanagement should also support the project managers. The project stakeholdersshould provide the required support to the development of the project team.Projects are done in diversified environments. The project team may experiencevariance in language, industry and culture while at work. The project team should bededicated to the project and the team members should work together, without losingtheir individuality. The goals for developing a project team are:

lop technical knowledge about the project, this leads to quality output andmeeting delivery schedules with reduced cost.

dge among team members.

3.Managing a Project TeamManaging a project team is the process of delegating responsibilities and tasks,monitoring team performance, providing feedback, solving issues, and coordinatingchanges to enhance overall project performance. Managing the team is one of the

most critical aspects of project management. The project manager should encouragebuilding competencies among the team members and reward them accordingly. Keyaspects of managing a project team are:

k and observing the commitment level in each team member.

-operative working relationship and ensuring effective communicationamong all members of the project team.

The inputs for managing a project team are:Assets of organisational process


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can be communicated to the project team. Various types of communication in ProjectManagement are:

Internal and external: These are the communications done within the projectteam and with the stakeholders.

Formal and informal: These include reports, logs, memos, emails, discussionsand project meetings.

Vertical or horizontal: The team members discuss project issues with themanagers and the peers in the project.

Official and unofficial: These include circulars, reports and also certain off-the-record conversations in a project.

Q.4 If the optimistic estimate of an activity is 12 days & pessimistic estimate is18 days. What is the variance of this activity?

ANS-Optimistic Time (To)= 12 DaysPessimistic Time (Tp)= 18DaysVariance of activity = [(Tp-To)/6]2

= [(18-12)/6]2= (6/6)2= 2

Q.5 Describe the following quality control tools:a. Ishikawa diagramb. Flow chartc. Pareto chartd. Scatter diagram

ANS- Ishikawa diagram : This is also known as fishbone diagram or Ishikawadiagram was developed in 1960 and named after Kaoru Ishikawa, a Japanesequality control statistician. It is one of the seven basic tools of quality management. It

is named fishbone diagram because of its fish-like appearance. It is a systematicway of analysing effects and causes that creates or contributes to the effects. Thistool is employed by a problem solving team for assembling all inputs systematicallyand graphically. All the inputs given to this tool is obtained from a brainstormingsession.It enables the team to focus on why the problem occurs and not on the symptoms orhistory of the problem. It also displays a real-time snapshot of the collective inputs ofthe team as it is updated. The possible causes are represented at various levels ofdetail in connected branches. The level of detail increases as the branch goesoutwards which means that an outer branch is a cause of the inner branch it isattached to. Therefore, the outermost branches in a cause and effect relationship

diagram usually indicate the root causes of the problem. Figure 11.4 shows anexample of cause and effect diagram.


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Flowchart: It is an essential project management technique. It is used by the projectmanager and project management team to discuss about the project. Flowchart is aspecific graphical representation of order and process that must take place duringthe life of a project. This represents and highlights fundamental elements of projectlike every single mode of input, processing action, and output. Flowchart is notmeant to represent a formal and unyielding plan that describes how the project mustbe conducted. It is a brainstorming type of activity that is meant to merely illustratethe anticipated course that the project and its anticipated components will take, withthe idea that it may in fact become obsolete as the project advances.Flowcharts are also used to represent a document process flow. This is used tofigure out bottlenecks or breakdowns in current processes. Flowcharts are also beused to show changes in process, when improvements are made or to show a newwork flow process. The figure 11.2 given below shows the generic flowchart

Pareto Charts: This quality control tool is based on Paretos rule. The Pareto rulestates that 80 percent of the problems are often due to 20 percent of the causes. Thebasic assumption is that most of the results in any situation are determined by asmall number of causes and helps to identify the vital few contributors that account

for most quality problems. The Pareto chart is a form of histogram that orders the


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data by frequency of occurrence. It shows how many defects were generated, by atype of category of identified cause.

For example, to determine the errors in the collection of beneficiary data, a projectteam identified five causes and frequency of errors, of each cause. The bars

represent each category and, the line the cumulative percentage of the errors. Thechart indicates that that 80% of the errors could be reduced just by improving thedata collection in two categories, instead of focusing efforts to correct all categories.Below an example of Pareto chart to identify the frequency of various data errors.

Scatter Diagrams: It is a graphical technique used to analyse the relationshipbetween two variables. It determines and shows whether or not there is correlationbetween two variables. Correlation means the measure of the relationship betweentwo sets of numbers or variables. Two sets of data are plotted on a graph, where y-axis is used for the variable to be predicted and the x-axis is used for the variable tomake the prediction.A scatter diagram shows the possible relationships. It should be noted that two

variables might appear to be related but they might not be. Hence those who knowwell about the variables must evaluate the variables. Correlation does not refer adirect cause and effect relationship.

variable can be predicted, based on the value of the other variables, then thereexists correlation. All relationships between variables are not linear. A visible slope ofline does not provide any information about the strength of correlation since thescales of the graph can be expanded or compressed on either axis of the scatterdiagram. The direct or strong correlation between the variables does not necessarilyimply cause and effect relationship. If a correlation is shown by scatter diagram,investigate for further confirmation. For example, volume of ice cream sold per day is

strongly correlated to the daily number of fatalities by drowning. Neither of thevariables is a result and strongly correlated to third variable which is the outside


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temperature. The steps to draw a scatter diagram for a process are shown in thetable below-

Q.6 List the benefits of WBS? Need for risk management in an organisation-

comment.

ANS-Work Breakdown StructureWork breakdown structure (WBS) is a fundamental component of projectmanagement process that helps in defining and organising the total scope of aproject using hierarchical tree structure. According to Project Management Body ofKnowledge (PMBoK), WBS is a deliverable-oriented hierarchical decomposition ofthe work to be executed by the project team to accomplish the project objectives andcreate the required deliverables. The hierarchy structure approach of WBS helpsthe project team to know the requirements of total project more accurately andspecifically. WBS can also be used to assign responsibilities and allocate resourcesto the project. It helps the team to monitor and control the project.

Benefits of WBSWork breakdown structure represents family tree hierarchy structure of projectoperations required to accomplish the objectives of the project. Tasks identified inthe WBS collectively describe the overall project. It serves to describe the linkbetween the end objective and activities required to reach that objective.Implementing work breakdown structure approach in project planning offers variousbenefits which are given in table below:


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Need of Risk Management in an OrganisationThe PMBoK defines risk management as the formal process by which risk factorsare systematically identified, assessed and provided for. Risk management providesan opportunity and support to an organisation to gain and access better control overvarious factors of a project. They are:

)

Risk management helps the organisation to control and monitor various activities in aproject. The following points describe the needs of the risk management:


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the activities carried out within the projectby taking appropriate measures, as well as to remove any interruptions as quickly aspossible in the event of interrupts in the project.

and thirdparties.

The Risk Management process is a generic guide for any organisation, regardless ofthe type of business, activity or function. It is an integral part of business planning. Italso helps project sponsors and project teams to take informed decisions regardingalternative approaches to achieve their objectives and to reduce relative riskinvolved, in order to increase the likelihood of success in meeting or exceeding theobjectives of the project. Risk management encourages the project team to takeappropriate measures to:

the objectives of project with lower cost, shorterschedules, enhanced scope and higher quality.

The effectiveness of risk management strategies varies for one project to anotherbased on their risk profiles. The following points describe the applicability of differentstrategy:For relatively low-uncertain projects, fast decision making can reduce theuncertainties from delays caused by regulatory changes, political changes and

economic changes.For project with high level certainties, purposeful postponement of somecommitments and decisions can reduce the risks through acquisition of more andbetter information that lead to better decisions.

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